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Price action in the Kiwi was a low volatility, choppy mess this week, which was no surprise as we lacked major catalysts from both New Zealand and the rest of the globe.

Overall, it was a net gain for the Kiwi against the majors, likely due to counter currency flows and broad risk sentiment mostly leaning positive throughout the week.

Overlay of NZD Pairs: 1-Hour Forex Chart
Overlay of NZD Pairs: 1-Hour Forex Chart
NZD Weekly Performance from MarketMilk
NZD Weekly Performance from MarketMilk

New Zealand Headlines and Economic data

Monday:

The ANZ World Commodity Price Index fell by 0.7% in June

The Kiwi opened up the week relatively strong, which as was likely due to the very bullish start to the week for the Chinese equity market lifting risk sentiment and risk assets higher early and through mid-week.

Tuesday:

New Zealand business confidence remains low in second quarter: NZIER survey

Dairy prices leap 8.3 percent in Global Dairy Trade auction

The Kiwi turned lower during the Asia session, which likely was a combination of the disappointing business confidence data above and from Aussie weakness.  Aussie bears were moved by news that Australia would be locking down again, and possibly on another weak Australia Services update.

Thursday:

New Zealand ANZ business confidence index improved from -34.4 to -29.8

Volatility and directional bias picked up for the Kiwi during the Thursday U.S. session, first popping higher before dropping lower, likely on rising risk aversion sentiment from U.S. equities amid refreshed concerns of how the coronavirus will impact the economy.

Friday:

Price action was choppy on Friday, but the Kiwi broadly stayed positive against the major currencies as global risk sentiment flipped back to positive to bounce the Kiwi a bit higher during the U.S. session.  This was likely on news from Gilead that remdesivir coronavirus treatment reduces risk of death.